Listed home credit business reports profit surge of £15m
International Personal Finance, the Leeds-based home credit business and digital business, has reported a £15m rise in pre-tax profits in a “very strong” financial year.
The listed company specialises in providing unsecured consumer credit to more than 2.3 million customers across 11 markets worldwide. The firm operate the world’s largest home credit businesses and a fintech business, IPF Digital.
For the 12 months ending 31 December 2018, International Personal Finance saw pre-tax profits rise by £15.3m to £109.3m. Revenue also increased by 4.1% to £866.4m from £842.5m the year prior.
During this period, the company delivered a 6% increase in credit issued led by its IPF Digital and Mexico home credit businesses, offset partially by a 5% contraction in European home credit. This growth increased its average net receivables by 6%, and revenue by 4%.
The company said that its European home credit business is “becoming more efficient and technologically enabled, the loan portfolio quality is excellent and it delivered very good operational and financial results this year.”
In addition, investments in growth opportunities in its IPF Digital and Mexico home credit businesses are reportedly “showing clear signs” that they will deliver.
The firm added that the plan is to create “a group with three pillars; a modernised European home credit delivering very good returns; a Mexican home credit business that combines ongoing growth potential with improved levels of profitability; and a global digital lending business that grows through constant innovation and delivers good returns.”
Gerard Ryan, CEO, said “I am delighted with the excellent progress we made against our strategic objectives which delivered a very strong financial performance in 2018. Profit before tax increased by £15.3m to £109.3m as a result of improving profits across all our businesses.
“We are particularly pleased with IPF Digital’s profit trajectory, with a strong contribution from established markets and reduced start-up losses within new markets, driven by both excellent customer acquisition and strong credit growth.
“We are confident that our strategy will continue to support growth across the Group by successfully addressing the demands of our core stakeholders: meeting our customers’ needs, creating value for our shareholders and contributing to the communities in which we operate.”
